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Determination of net annual value of a railway undertaking as a whole.
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5.—(1) At every quinquennial revision the Commissioner shall in relation to every railway company's undertaking do the following things, that is to say:—
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(a) ascertain the net receipts of such company as a whole for the first five of the six completed accounting years next preceding the date on which such valuation is to come into force;
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(b) in case such undertaking is carried on in Saorstát Eireann only, ascertain by reference to such net receipts the average net receipts of such company for such five years;
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(c) in case such undertaking is carried on both in Saorstát Eireann and Northern Ireland—
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(i) apportion such net receipts for each of such five years between Saorstát Eireann and Northern Ireland upon the basis of a fair and just estimate of the proportions thereof accruing in Saorstát Eireann and Northern Ireland; and
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(ii) ascertain by reference to the part of such net receipts of such company for such five years so apportioned in respect of Saorstát Eireann, the average net receipts referable to the carrying on of the undertaking in Saorstát Eireann for such five years;
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(d) estimate by reference to the average net receipts so ascertained the rent at which the railway hereditaments in Saorstát Eireann occupied by such company might reasonably be expected to let from year to year, the probable average annual cost of repairs, insurance and other expenses (if any) necessary to maintain the hereditaments in their actual state and all rates and tithe rent charge (if any) being paid by the tenant;
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and the annual rent so estimated shall be the net annual value of such undertaking as a whole for the purposes of such quinquennial revision.
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(2) In estimating for the purpose of this section the rent at which the railway hereditaments occupied by a company might reasonably be expected to be let as a whole the Commissioner and any Court before whom such valuation might come under appeal shall not have regard to any custom or practice affecting the valuation of railway hereditaments which obtained prior to the passing of this Act in regard to the amount of the deduction or allowance to be made in respect of the capital of a tenant, but shall have regard to all relevant circumstances and material considerations with a view to securing that such estimated rent shall represent a fair and just division of the net receipts as between landlord and tenant.
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(3) For the purposes of this section the net receipts of a railway company in any year shall be taken to be the amount produced by deducting from the total revenue receipts of the company in that year from its undertaking—
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(a) any receipts included in that total which—
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(i) arise from any interest of the company in any other company or other undertaking, or
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(ii) arise from any hereditament which is not a railway hereditament occupied by the company, or
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(iii) consist of royalties or way-leaves, not being royalties or way-leaves payable to the company in respect of the user of a hereditament which is a railway hereditament occupied by the company, or
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(iv) represent general interest or accretion of capital; and
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(b) the amount properly charged in that year as revenue expenditure in respect of management, working, maintenance and renewals (including maintenance and renewal of plant and rolling stock) and in respect of rates and tithe rent charge (if any), subject however to the adjustments hereinafter mentioned, that is to say:—
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(i) the amount to be charged shall include any amount charged against the revenue of the year as a transfer in reduction of any sum previously carried to a suspense account in respect of past expenditure of the like kind properly chargeable to revenue, and also any amount properly set aside out of revenue for the purpose of meeting any future expenditure of the like kind properly chargeable to revenue;
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(ii) from the amount to be charged there shall be excluded such part (if any) of the expenditure of the year as is defrayed out of amounts previously set aside for the purposes aforesaid, or is carried to a suspense account for the purpose of deferring to succeeding years the charging thereof against revenue;
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(iii) the amount to be charged shall be increased by an amount representing interest for one year, calculated at such rate per centum per annum as the Commissioner may determine, upon so much of of the balance brought forward at the commencement of that year in any suspense account as represents any such past expenditure as aforesaid;
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(iv) the amount to be charged shall be reduced by an amount representing interest for one year, calculated at the same rate, upon the balance remaining unexpended at the commencement of the year of any amounts previously set aside out of revenue for the purposes aforesaid, and, in determining the balance unexpended of any such amounts, no expenditure in respect of additions or improvements of a capital nature which was charged in the Company's Accounts for the year ending the thirty-first day of December, nineteen hundred and twenty-five, or any later year, shall be debited against those amounts:
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(v) in ascertaining the amount to be charged as aforesaid and in making any such adjustments as are mentioned in the preceding sub-paragraphs, any expenditure properly attributable to the earning of any such receipts as are specified in paragraph (a) of this sub-section and any provision made in respect of any such expenditure by means of a suspense account or of a renewals fund or otherwise shall be disregarded.
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(4) For the purposes of this section where any hereditament is occupied by a railway company partly for the purpose of its railway undertaking and partly for other purposes, the total revenue receipts of the company shall be increased by such sum as the Commissioner may determine to represent a fair annual rent for the occupation of that hereditament for those other purposes.
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